Australia mobile services revenue to increase at 3% CAGR over 2021-2026, forecasts

Mobile service revenue in Australia is expected to increase from US$9.6bn in 2021 to US$11.2bn in 2026, at a compound annual growth rate (CAGR) of 3%, mainly driven by the mobile data service segment, according to GlobalData, a leading data and analytics company.
An analysis of GlobalData’s Australia Mobile Broadband Forecast Model (Q4-2021) reveals that mobile voice service revenue is expected to decline slightly at a CAGR of 0.3% over the forecast period 2021-2026. On the other hand, mobile data service revenue is set to increase at a CAGR of 4.1%, supported by the growing adoption of 5G services, which yield higher average revenue per user (ARPU).

Deepa Dhingra, the Senior Telecom Analyst at GlobalData, says: “While 3G service subscription is expected to witness a steep decline through the forecast period, 5G service will see its subscriptions surpass that of 4G service in 2024 and become the dominant mobile technology cornering 68% of total mobile subscriptions by end of the forecast period. This growth in 5G subscriptions will be primarily driven by the ongoing 5G network expansions by the major operators – Telstra, Optus and TPG Telecom.
“Telstra will lead the mobile services market in Australia in terms of mobile subscriptions in 2021, followed by Optus and TPG Telecom. Telstra will retain its leading position through 2026 with plans to increase its 5G network reach to 95% of the population from the existing 75% while increasing metro cells by twofold to enhance 5G speed and capacity by 2025.”